Where do your employees live?
In the post-pandemic world of flexible, hybrid and remote work, where your employees live is suddenly a very important question.
Conversations around post-pandemic worker types overemphasize the difference between office workers and hybrid and remote workers on the other — and underemphasize the importance of working remotely. much larger differences between specific types of remote workers. These differences have big implications for both the company and the employees themselves.
In other words, we tend to create a big divide between full-time office workers and hybrid and remote workers. But that’s not where the line is.
A full-time office worker and a hybrid (one who works part-time in the office and part-time from home) have the most in common. Both usually reside in the same state and are therefore governed by the same employment laws. Both usually live within commuting distance of work and can be called to the office on short notice. They are usually in the same time zone. Both generally pay taxes in the same state. And the tax implications for employers are often the same.
Full-time and hybrid employees are on the same side of our Great Divide. On the other side are some, but not all, remote workers. A remote employee may live (both legally and physically) in another state, another country, a different time zone, and they may not be called to the office for short periods of time. Employment law and tax situations can be much more complicated for both employees and employers.
So which side of the Great Divide will digital nomad workers fall?
The surprising answer is: It depends.
A digital nomad, by definition, lives somewhere other than their legal address. Digital nomads don’t live at home.
Let me explain.
A digital nomad moves from place to place. (That’s what makes them nomads.) But the world isn’t really set up for nomads; it asks for an actual “home address”, even from people who don’t have one. Federal and state governments, various companies, and other organizations will not accept empty “home address” fields in their forms and documents. And so each nomad needs a physical address other than a PO Box so that they can receive mail.
So what digital nomads do is keep a “basement” — a place they rent or own that they live part-time in between trips — either they use the address of a relative or friend.
“Home address” is what determines which state employment law applies. It also governs the laws and tax obligations for both employers and employees.
But back to the question of our Great Divide: A digital nomad with a legal home address in the same state as a company is mostly on one side of the Great Divide (on employment law and taxes for both employees and companies). A digital nomad with a legal home address in another state is on the other side of the Great Divide. And it doesn’t matter where the person actually lives at any given time.
Take me as an example. I have lived and worked as a digital nomad since 2006. My legal home address during that time was always in California. But for most of that time, my actual residence was in any country in Europe, Latin America, the Middle East or North Africa.
Although I currently live in Morocco, everything about my employment — from employment law to taxes — is administered by the state of California and the United States of America.
When I enter a foreign country, Customs always ask me to visit for business or tourism. The answer is always travel.
Unless I reside legally abroad (which I have never done), if I visit a country to attend a trade show (which I have done only about a dozen times), I only go to there for travel. and not a business — although I will be working full time. (Yes, I’m at work, but that’s not the only reason to why I was there from the beginning.)
From a lifestyle perspective, a digital nomad’s legal home address is nothing. It doesn’t matter and it doesn’t apply. The only thing that matters is the physical location. But from an employment perspective, it is only necessary to have a legal home address for employment and tax law purposes. However, the physical location of a digital nomad employee is completely unimportant.
And so a digital nomad employee with a legal home address in the same state as the company — but living around the world — is less complicated for an employer than an employee. at home live on the other side of the state. line.
That is the most important fact about digital nomad employees. Now you know.
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https://www.computerworld.com/article/3650492/no-one-has-ever-told-you-the-most-important-fact-about-digital-nomads.html#tk.rss_all No one has yet told you the most important truth about digital nomads